Weshould go back in history to the time when you had to be a financially responsible citizen to purchase real estate through conventional methods ... but we will not. At least not in this posintg. Instead we will very shortly answer the question, "What is rapid acquisition and how does it affect real estate investors and real estate professionals who provide services to real estate investors?"

Many conventional lenders who loan up to 100% of the purchase price on non-owner occupied residential investment properties have, in the last several months, added the limitation to purchases we call Rapid Acquisition. Essentially it is a limitation designed to prevent lending for investment property purchases to anyone who has passed the limit on the purchase of real estate properties in a specific time period. Most lenders who have a rapid acquisition limitation follow these guidelines:

No more than 4 properties in any 24 month period

No more than 2 properties in any 6 month period

This generally means even if you purchased a real estate investment property using funding from another lender the purchases count toward rapid acquisition.

Some lenders who have Rapid Acquisition allow rapid acquisition will allow an exception if the borrower has enough liquid assets (reserves) to cover 6 months of payments of the entire investment portfolio. 

If you are troubled by this please read the blog Stop The Bleeding. 

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I started writing on Active Rain in 2006 when I was representing the mortgage industry. I am no longer in that industry and many of the older posts contain outdated information. Please do not contact me for LENDING or MORTGAGE questions but rather contact a licensed mortgage professional from your area. I have always been in marketing and branding and that is still what I do. Thanks for reading!

 
Post is included in group: North Georgia Real Estate

3 Comments on What is "Rapid Acquisition" and Why Should Anyone Care?

DEC
31
2007
128,242 Points Outside Blog

Hi Ken,

Are you in favor of this practice?  I was not sure from your post.  It does seem a little too much like baby sitting for those who are more sophisticated and know how to manage their affairs, but probably needed for the many who have never gone through a real market down cycle before.

6:14pm • #1
JAN
22
2008
328,773 Points 5 Featured Posts Outside Blog

Ken:  I haven't heard about "rapid acquisition".  Thanks for teaching me something else about real estate.
8:09am • #2
269,182 Points 72 Featured Posts Outside Blog

William - I don't know how I missed your comment, sorry! I was in favor of it more back when I posted it a year ago but that was because there were so many idiots accepting loan applications and combined with idiots teaching real estate investing (which the market is still full of!) that new investors were buying more than four homes per year and keeping then with no experience as an investor. (How's that for sentence run-on?) Also I'd like to publicly thank you for being one of the most consistent commentors on my blog with some of the best direction for me especially about 1031's. Thank you very much sir.

Donna - Thank you for your comment. Little tidbits like this is why more and more professional investors AND Georgia Real Estate Professionals - even from the Blue Ridge area - turn to me and my team every day. It's also why we're still here and in business. We do smoother closings. Nobody is 100% perfect but we try like crazy! Besides, I like coming to closings in Blue Ridge - gives me a morning out of the office and in the mountains. Besides, I have friends up there I like to surprise now and them.
1:13pm • #3

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Ken "Yes You Can" Cook

Marietta, GA

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Ken Cook, Brand Strategist

Address: Marietta, GA, 30062

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